About payday loans
The payday loan industry is growing fast in many countries, especially in the UK.
If you are planning to opt for a payday loan, then you should read this to learn more about this type of loan.
Payday loans are, basically, very small loans to meet urgent money needs. These loans are provided for amounts between £100 and £800 and are usually repaid on your next payday. Your next payday could be anything between 14 and 45 days away. If you are unable to repay the loan on the agreed repayment date you can apply to roll the loan over by paying an additional fee.
A payday loan is directly transferred to your bank account after your application is approved. It is possible to have your loan approved within a few hours of applying, so, if your car has suddenly broken down and you desperately need some money to repair it, then a payday loan may be a good choice.
Before opting for this type of loan, remember that UK payday lenders charge no more than £24 interest for £100 borrowed over 30 days.
What makes it different: –
Payday loans are different because they are loans which you can apply online and access almost instantly – and which have a short-term repayment policy. Other loans from banks and financial institutions tend to be for larger amounts and longer periods. If you are unsure about being able to repay a loan on the agreed date, then it is probably best not to apply. Saving money is always a option. Short term payday loans are designed for financial emergencies.
Challenges you might face: –
The major limitation of a payday loan is that it provides only relatively small amounts of money. But since it is for emergencies, most of the times it is sufficient. Another concern could be that if you keep making use of payday loans and keep delaying the repayment date, you could be experiencing more major financial difficulties
Warning: Late repayment of loans can cause serious money issues. Head over to www.moneyadviceservice.org.uk for help.
Regardless of these challenges, the payday loan is one of the best options for meeting your emergency financial needs. Reputable loan lenders like Monkeydosh.com give you fast and flexible loan schemes to meet your unexpected financial needs.